Payment Process Request

R12: How to Submit a New Payment Process Request (a "payment batch")

(Doc ID 1307420.1)
R12: AP/IBY: Primary Troubleshooting Guide for Payment Process Requests
(PPRs) for Oracle Payables [VIDEO] (Doc ID 1305001.2)
R12 Payment Process Request - Functional and Technical Information (Doc
ID 821133.1)
R12: What are PPR Templates, and how can I create and use them? (Doc ID
1312158.1)
What is PPR
It is same as payment batch processing.

1. The process begins when a source product such as Oracle Payables need to pay
document payable such as invoice to vendor or employee
2. Oracle Payment groups document payables into payment process request [a batch for
payment] and submit it to Oracle Payments
3. Within the PPR the build payment program groups the document payables into groups
know as payments, which represent individual checks or electronic payments
4. The Create Payment Instruction programs groups payment into payment instruction.
Payment instruction are then printed or submitted electronically to payment system or
bank.

PPR Template -
Oracle Payables uses templates created by users in the Templates tab of the Payments Manager
[module] to simplify pay run [PPR] processing. A payment process request template allows you to
predefine invoice selection criteria, payment attributes, processing instructions, and specifies how
validation failures should be handled [in other words, predefine a PPR header].

1. Selection Criterial

o Number of Pay from date

o Pay Groups

o Legal entity

o Payment Currencies

o Operating unit

2. Payment Attribute

o Payment Date
o Disbursement Bank Account - If you want to use a single bank account to pay for
all of the invoices and memos in this PPR, enter the bank account name here. If
you want to use multiple accounts, leave this blank, and the system will ask you
for the Disbursement Bank Account information later in the process
o Payment Document - If you have selected a Disbursement Bank Account above,
you can optionally specify the set of Payment Documents associated with that
 Bank Account that you want to use for this PPR. If you wish to use multiple
Payment Documents for a given Bank Account, you can leave this blank, and the
system will request the info later in the process.
o Payment Process Profile- PPPs include specifications for payment formatting and
transmission
o Starting Voucher Number
3. Process Automation

o Stop Process for Review after Scheduled Payment Selection

o Calculate Payment Withholding and Interest during Scheduled Payment Selection

o Stop Process for Review after Creation of Proposed Payments

o Create Payment Instructions

You can choose whether to have payment instructions created immediately after
the pay run reaches a status of Completed or schedule the Create Payment
Instructions Program to run periodically at a specified time.

Immediate Payment Instruction Creation If you want immediate payment

processing, you can select the Automatically Initiate When Payment Process
Request is Complete option from the Create Payment Instructions drop-down list
so the Create Payment Instructions program starts immediately when the
payment process request completes.

Note: If you select this option, you are required to specify a payment process
profile in the Payment Attributes subtab.

The Create Payment Instructions program then creates payment instructions for
those payments. Electronic instructions are transmitted to the bank. If they are
printed instructions, printing is initiated.

This option also ensures that payments from this payment process request will
not be combined with payments from other payment process requests when the
system builds the payment instructions.

Scheduled Payment Instruction Creation Alternatively, you can set the Create

Payment Instructions option to Wait for Standard Request Submission. In this
scenario, an enterprise typically schedules the Create Payment Instructions
Program to run periodically. An enterprise would choose this option to take all
built payments from multiple payment process requests and build fewer
payment instructions.

4. Validation Failure Result

o Document - During processing of the payment process request, validations are

performed for the documents payable. If any document fails validation, this
instruction tells the system which documents to drop from the payment process
request: 1) just the document that failed, 2) all documents for the payee, 3) stop
the payment process request for review, or 4) reject all documents in the payment
process request.
o Payment - Similarly, during processing of the payment process request,
validations are performed for the payments. If any payment fails validation, this
 instruction tells the system which payments to drop from the payment process
request: 1)just the payment that failed, 2) all payments in the payment process
request, or 3) stop the payment process request for review.

Scheduling PPRs using PPR Templates

You can use the name of a PPR Template as the Request Name on the Schedule Payment Process
Request form in the Payments Manager module, allowing users to schedule PPRs to run
automatically on a periodic basis, such as once/multiple times a day, once/multiple times a week,
once/multiple times a month, etc. The scheduling parameters are generally the same as for
scheduling Oracle Reports or other processes.

Oracle Payments Grouping And Validations

 Understanding Grouping -
1.1 Definition
Grouping is the option in R12 oracle payment that allows user to define the rules for :

o How to group the selected documents into proposed payments for payment
batch
o how to group the proposed payment into Payment instruction.

1.2 Hard Coded grouping rule

Oracle has seeded several "hard-coded" grouping rules in the background that are not
user-configurable

DOCUMENTS: Following attributes used for Documents into proposed payments

grouping rules:

o Payment request
o Organization id
o Payee id
o Currency
o Payment process profile
o Payment method
o Payment date
o Payment function
o Internal bank account
o Payee bank account
o Pay alone flag
o Original document id - interest invoices are grouped with related invoices
o Payee address - only applicable for printed payments
o Space left on stub - only applicable for printed payments
o Beneficiary party - for third-party payments

PAYMENTS: Following attributes used for proposed payments into Payment Instructions
grouping rules

o Payment Process Profile

o Internal Bank Account - only for PPP type "printed"
 1.3. How do you define user-defined grouping rules
User-defined grouping rules for documents are selected on the Payment Creation tabbed
region on the Update/Define Payment Process Profile window.

(Payments Setup Administrator responsibility > Oracle Payments Setup menu > Codes
region> Payment Process Profiles row):

To enter selections for DOCUMENT (selected invoices and memos) grouping within a
PPR, open the Payment Creation tab

![image-20220504194314936](C:\Users\05011K744\Box\Vijay\Documents\Typora\Oracle
Apps\image-20220504194314936.png)

To enter user-defined grouping rules for PAYMENTS (that is -- grouping the proposed
payments into Payment Instructions), open the Payment Instruction Creation tab:

![image-20220504194348354](C:\Users\05011K744\Box\Vijay\Documents\Typora\Oracle
Apps\image-20220504194348354.png)

1.4. When does Grouping occur within a PPR?

GROUPING DOCUMENTS

When processing a payment batch in R12 (also known as a "Payment Process Request" or "PPR"),
one of the processes involved is the Create Payments process (Code: IBY_PAYGROUP_PUB),
which is administered by the Payments module (IBY).

During this process, validated documents (the selected invoices and memos for payment) are
grouped into "proposed" payments based on the defined DOCUMENT grouping rules - both
user-defined and hard-coded.

GROUPING PAYMENTS

Another process involved during a PPR is the Format Payments process (Code:

IBY_PAYINSTR_PUB), which is also administered by the Payments module (IBY).

During this process, proposed payments are grouped into Payment Instructions based on the
defined PAYMENT grouping rules - both user-defined and hard-coded.

2. Understanding "Validations"
2.1 Definition
Oracle Payments provides a flexible validation framework that allows the user to execute
validations at various levels during payment processing. The validations can be attached at the
payment method level or the payment format level. There are two types of validations:

 Pre-Defined validations: Payments provides a seeded library of various "country-

specific" validations that are required for country-specific requirements, and "standard"
validations available to everyone, such as "validate supplier bank account assignments",
etc.
 User-Defined validations: Users can create validations using various seeded attributes.
For example, a user can define a validation that requires that payment amounts should
not be below $10, etc..

2.2 How to build/assign Validations

Assigning PRE-DEFINED (seeded) Validations:

(Payments Setup Administrator responsibility > Shared Setup region > Validations row)

Building USER-DEFINED Validations

User-defined validations are built directly in the Update window for the appropriate Payment
Method or Payment Format (for instance, see the User-Defined Validations region on the
"German International EFT Format" screenshot above):

2.3. "Validation point"

"Validation point" is the stage at which the validation is executed in the payment process.
Validations occur at the following points in the payment process:


o Document level in the source product: In this case, the validation is executed
early in the process while the invoice is created in Payables (AP). To perform
document level validation, validations should be assigned to the payment
method. For example, a validation at payment method can be that document
payee bank account is required on the invoice. In such case, when invoice is
created without payee bank account, the invoice will be put on hold.

o Document level in Oracle Payments (IBY): In this case, the validation is
automatically executed late in the process by the Build Payments program as the
documents are grouped into payments. These will be executed if document-
related validations are attached at payment format level. For the same example as
given above, if validation document payee bank account as required is attached
at payment format level, this validation will be executed during build payment
process.

o Payment level in Oracle Payments: In this case, the validation is automatically
executed late in the process by the Build Payments program as the documents
are grouped into payments. This occurs when the validation is set on a field, such
as the payment amount. The example of such validation can be that payment
amount should not be less than 10$. If such validation is attached at payment
format level, this will be executed during build payment process.
 Payment Instruction Level in Oracle Payments: In this case, the validation is
automatically executed late in the process by the Create Payment Instruction program as
the payments are grouped into payment instructions. This occurs when the validation is
set on a field, such as payment instruction total should not exceed a threshold amount.

Payment Process Status

 NEW: This status indicates that the PPR has been successfully submitted for processing,
and the AutoSelect program is digesting the criteria provided by the user on the header
of the PPR in preparation of the automatic selection the invoices and memos related to
that criteria.
 SELECTING INVOICES: This status indicates that the AutoSelect program is selecting the
eligible invoices/memos for the payment batch based on Due Date, Discount Date, Pay
Group, and other criteria provided by the user on the header of the PPR.
 CANCELLED - NO INVOICES SELECTED: If no invoices or memos met the selection
criteria provided by the user on the header of the PPR, the PPR is automatically
terminated and the status changes to this status.
 INVOICES SELECTED: After selecting the documents (invoices/memos), they are locked
to prevent other checkruns from selecting the same documents.
 INVOICES PENDING REVIEW: This status will only appear if you selected the Stop
Process for Review After Scheduled Payment Selection option on the Processing tab of the
PPR header. This status means that the PPR process has stopped, and is waiting for you
to review the invoices and memos that were selected for payment (and make any
changes to the batch, as needed). Click on the Take Action icon to be taken to the Review
Selected Scheduled Payments window.
 CALCULATING SPECIAL AMOUNTS: This status will only appear if you selected
the Calculate Payment Withholding and Interest During the Scheduled Payment
Selection option on the Processing tab of the PPR header. This status means that interest
and withholding tax are being calculated and applied, as necessary, to the invoices and
memos selected for this payment batch.
 INFORMATION REQUIRED - PENDING ACTION: This status appears if you did not
provide a default Internal (Disbursement) Bank Account and/or PPP on the header of the
PPR. In that case, you need to click on the Take Action icon to be taken to a form where
you can decide which internal bank account and PPP should be used for each invoice and
memo selected for payment.
 PENDING PROPOSED PAYMENT REVIEW: This status will only appear if you selected
the Stop Process for Review After Creation of Proposed Payments option on
the Processing tab of the PPR header. In this case, the system is waiting for you to review
(and modify, if needed) the proposed payments for this batch. Click on the Take
Action icon to be taken to the Review Proposed Payments window.
 FORMATTING: This status indicates that the proposed payments have been turned into
payment instruction files. At this point, you will want to click on the Show link to view the
new associated payment instruction file(s). Each payment instruction file with have their
own PI Reference Number. If you have both electronic and paper ("check") payments
involved in this payment batch, you will see a payment instruction file for each type of
payment method.
 CONFIRMED PAYMENT: Once the payment instructions have been transmitted/printed
and confirmed, the Status of the PPR changes to this status to indicate a successfully
completed payment batch (PPR).
 TERMINATED: If the user terminates a PPR anytime prior to confirmation of the
payments (using the Terminate icon), the status will change to "Terminated", and the PPR
is permanently closed.